First-home buyer update: What will my money get me in Kapiti?


Posted 3 years ago by Pope & Co. Mortgages

With the average house price in Kapiti increasing 7.4% from last year ($525,799 to $564,784) you may very well be asking, what exactly will my money get me in Kapiti?

First-home buyers in Kapiti with a budget between $400,000-$500,000 will get off to a great start, according to Tall Poppy Real Estate Salesperson Steph Bradley, with the most common options being townhouses and three-bedroom stand-alone houses.

“Both these types of properties are great first-home choices, as they usually have low maintenance construction features with simple floor plans that minimise the risk of water ingress and deterioration issues,” says Ms Bradley.

The townhouse:

The TownhouseThe Townhouse2

Joined but dated two bedroom townhouses that are structurally sound usually start from about $400,000 in Kapiti.

“Expect some variability in price, perhaps even up to $450,000 as you start adding content, sun and as the location becomes more attractive,” says Ms Bradley.

The townhouse frequently has a single internal access garage, but is usually on a cross-lease title, which is normally non-problematic.

Just make sure your lawyer checks over any cross-leasing. There are lots of these types of townhouses in Kapiti and they can be spruced up quite affordably to feel like home when you have some extra cash.

The 3-bedroom stand-alone house:

Stand alone

Another great option for first-home buyers is the three-bedroom cement-board stand-alone home on a freehold title, usually with a detached garage.

“These usually start in the low to mid $400,000s but again, expect a variation of up to $100,000 when comparing location, sun, condition and content.

Be prudent with your due diligence—one apple is not the same as the next apple.

Ms Bradley says that getting on the property ladder is the priority, not necessarily holding out for something perfect.

“Buying your first home is a monumental occasion and in my experience, many buyers consequently hold off making offers because everything they find within their budget is just not quite what right. My advice? Just buy something. It might have pelmets and an apricot coloured bathroom. Someone is probably going to have to share a room. But buy it anyway. Buy it, get your hands dirty, and make it yours and if you add some real value for the next person, it won't be long before you can afford that perfect home.”

What about the different suburbs?

Some suburbs are more tightly held than others—but generally speaking, the rule is—the closer the home is to the beach, the more you might expect to pay.

Ms Bradley says that first-home buyers are also now demonstrating more comfort buying further north, for example in Otaki, to optimise their dollar.

“The new proposed roading makes buying further north more palatable.”

New home owners: Stacey & Jono

First-home buyers Stacey and Jono of Waikanae*, say buying their first home required intense saving, with a deposit of almost $100,000 necessary.

“We were a bit shocked at what little our money would get us, and how much we needed to save. We got very lucky with our house as it was an estate sale, and they wanted it to go to a nice young couple, but we were looking for about two years. It took over five years to save almost a $100,000 deposit, which included living at home for the past three years in order to save.”

*Names changed for privacy.

So is it impossible for first-home buyers out there currently?

Here at Pope & Co. Mortgages we say no, as long as you have saved up a suitable deposit and have good income to meet strict lending criteria.

Craig's advice: “Seek advice about your current financial position from a mortgage broker who knows the market. It’s a really complex lending world and banks’ availability of low deposit approvals changes all the time. Make sure you minimise any personal debt and have good permanent job stability. There are options with as low as 5% deposit but 10% is a good starting point. First-home buyers at the moment can expect to pay around $400,000-450,000 for a first home in Kapiti.”

Call us to discuss your options 0800 000 517.

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